Monthly Permits

Weekly Rigs

Apr 4, 2018

Weekly rig report sourced from Baker Hughes Map identifies week over week change in rig activity by county in New Mexico and Texas. The graph shows the top 10 counties by overall rig count beginning in 2016. Quote of the week Success is not final; failure is not fatal: It is the courage to continue that counts. Winston Churchill

Outside The Yellow: A Review of Leasing Activity Over the Last 12 Months

Apr 4, 2018

Data Sources and Methodology Compiled all lease level activity for the prior twelve months using DrillingInfo. Analyzed leases documents, memos of leases, extensions and lease amendments in order to identify trends in company leasing activity. Highlights Continental Resources is expanding its position in the Northern Midland Basin which they began acquiring in late 2016.

A Review of Parent/Child Well Development in New Mexico

Apr 4, 2018

Methodology Calculated horizontal distance to nearest wellbore using the midpoint of the lateral. Child wells were identified using three parameters: Distance Parameter: Horizontal distance less than or equal to 1,000’. Timing Parameter: Completion date greater than six months. Formation Parameter: Landing zone of parent well must be in the same zone as child well. Note: Also identified child wells regardless of formation to account for communication between zones (i.

Monthly Permits

Mar 3, 2018

Overview of Permitting Activity Live link to DrillingInfo which is updated daily Currently only shows horizontal permits Wells contains following permitting attributes: Company, Well Name, Well Type, Approval Date, Formation and Permit Depth 2nd map attempts to identify permitted well pads using clustering Note: Well counts do not include previously drilled or permitted wells at this time Top 20 operators are colored in map and chart March Permitting Activity {"

EIA DUC Report

Mar 3, 2018

Overview of EIA DUC Inventory Report A drilled but uncompleted well (DUC) is a new well after the end of the drilling process, but its first completion process has not been concluded. EIA uses 20 days to estimate days to TD. This likely overestimates DUC inventory in basins where PAD drilling is predominant. Report tracks monthly changes in DUC inventory beginning in 2014. Permian Monthly Highlights Permian Basin ended February with ~2,937 wells waiting on completion.

Oil and Gas Producer Pricing Index

Mar 3, 2018

Producer Pricing Index What does it measure? The Producer Price Index (PPI) program measures the average change over time in the selling prices received by domestic producers for their output. The prices included in the PPI are from the first commercial transaction for many products and some services. Why is it useful? Commonly used in escalating purchase and sales contracts. Indicator of overall price movement at the producer level.

4Q'17 Conference Call Highlights

Feb 2, 2018

Service Companies Halliburton Helmerich and Payne Upstream Companies Anadarko Petroleum Apache Resources Callon Petroleum Carrizo Oil and Gas Centennial Resource Development Cimarex Energy Chevron ConocoPhillips Devon Energy Diamondback Energy Energen Encana Corporation EOG Resources ExxonMobil Halcón Resources Laredo Petroleum Marathon Oil Matador Resources Murphy Oil Noble Energy Oasis Petroleum Occidental Petroleum Parsley Energy Pioneer Natural Resources RSP Permian Shell SM Energy QEP Resources WPX Energy Service Companies

Recent Transactions and Current Deals On The Market

Feb 2, 2018

Data Sources and Methodology Data obtained from PLS and filtered to show relevant transactions and current deals on the market. Select active deals or previous M&A activity in the map. Table includes current deals. Select Highlights Three Rivers Operating III (Riverstone backed) recently divested it’s ~60,000 acre position in Culberson County. Riverstone stated they received a ROI of ~2.

Limelight: A Closer Look at Diamondback's New Position

Feb 2, 2018

Focus Diamondback recently announced a new exploration play targeting the Mississippian oil play in Ector and Crane Counties. Company acquired ~19,000 acres which they plan on delineating beginning this year. The map below identifies offsetting permit/spud activity. Majority of activity is vertical development, with the most active operator, Oxy, North of their acreage. Adventure Operating has completed 2 horizontal wells on their acreage in 2016 and 2017 targeting the San Andreas formation.

EIA DUC Report

Feb 2, 2018

Overview of EIA DUC Inventory Report A drilled but uncompleted well (DUC) is a new well after the end of the drilling process, but its first completion process has not been concluded. EIA uses 20 days to estimate days to TD. This likely overestimates DUC inventory in basins where PAD drilling is predominant. Report tracks monthly changes in DUC inventory beginning in 2014. Permian Monthly Highlights Permian Basin ended December with ~2,880 wells waiting on completion.

Monthly Permits

Overview of Permitting Activity

March Permitting Activity

Recommended Workflow

Identifying Well Pads Using Cluster Mapping